Teledyne Technologies Comments on Earnings Outlook
LOS ANGELES - February 23, 2001 - Teledyne Technologies Incorporated (NYSE:TDY) announced today that the company has revised the outlook for its aircraft piston engine business, and for certain commercial electronics product lines.
"Although the company's backlog for new piston engines for the OEM aircraft market remains healthy, we now see the overall weakness in the economy affecting the demand for aftermarket piston engines and high-margin piston engine spare parts," said Robert Mehrabian, chairman, president and chief executive officer of Teledyne Technologies. "Based on the current level of orders for aftermarket products, we forecast a significant decline in sales and profits for the Aerospace Engines and Components segment."
The company is taking a number of aggressive actions to address the financial performance of its Aerospace Engines and Components segment. These actions include an increase in the temporary layoffs already begun and immediate reductions in all discretionary and capital spending.
As announced earlier, first quarter 2001 operating profit in the company's Electronics and Communications segment was expected to decline. The company is now expecting an even greater decline due to further weakness in demand for certain commercial electronics products, especially relays used in semiconductor test equipment. Even though some sources are projecting recovery in demand for semiconductor products in the second half of the year, due to a lack of revenue visibility, the company does not expect near-term recovery in its relay product line.
Based on current market conditions affecting the company's Aerospace Engines and Components and Electronics and Communications segments, the company now estimates that first quarter and full year 2001 earnings per share will be approximately $0.15 and $0.95, respectively.
Teledyne Technologies is a leading provider of sophisticated electronics and communication products, systems engineering solutions and aerospace engines and components. Teledyne Technologies has operations in the United States, the United Kingdom and Mexico.
This press release contains forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995, relating to earnings, growth opportunities, capital expenditures and strategic plans. Actual results could differ materially from these forward-looking statements. Many factors, including the extent and timing of acceptance of fiber optic products by customers (including service providers), continued outsourced manufacturing of optoelectronic products, funding and continuation of government programs and economic and political conditions, as well as the outcome of the crankshaft investigation, could change the anticipated results. Additional information concerning factors that could cause actual results to differ materially from those projected in the forward-looking statements is contained in Teledyne Technologies' periodic filings with the Securities and Exchange Commission, including its 1999 Annual Report on Form 10-K, Form 10-Q for the quarter ended October 1, 2000, as well as the definitive prospectus dated August 16, 2000, related to the company's underwritten public offering.